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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Factfinder who wrote (26642)	12/26/1998 12:28:00 PM
From: av ram	Read Replies (1) \| Respond to of 45548

Summary of Gruntal Report: "Investor Suitability: Growth 3Com reported revenue and EPS of $1.54 billion and $0.36 versus $1.2 billion and $0.01 in the same period a year ago. Revenue was on our estimate, but the gross margin line improved by 210 basis points sequentially, above our expectations. New product acceptance was the primary factor in the gross margin improvement, with an estimated 60% of revenues generated from new products. Operating expenses were in line with expectations at 35% of sales. Finally, approximately $0.01 of the upside was generated through an adjustment to the tax rate previously assumed to be 32%, but now 31%. Management noted that the company has not seen a slowdown in either PC sales or new projects that might impact the company's internal progress. On a geographic basis, the company saw a healthy environment in Europe and the U.S., while Latin America was off and Asia Pacific was no worse than in prior quarters. This was the first quarter that the company has sealed more than 100 large deals of $500,000 or more each. We have a $70 price objective, based on a 35 multiple to our F2000 EPS estimate. ( David Takata )"